Does your state credit check for car insurance?

[serryjw]

I don't have a car but heard today that Colorado does and your car insurance is based on your driving record and credit score

[Droopy]

1. My state doesn't sell car insurance

[serryjw]

2. Either does Colorado BUT

the insurance companies are still pulling credit reports and basing their rates on the score.

[Tallison]

4. Is there a statistical basis

linking bad credit to liability risk, I wonder? My credit's good, my driving record not-so-good.

[Floogeldy]

5. Very insightful comment

B-)

[sandnsea]

3. Yep it is

I don't think that has to do with the state, I think it depends on the insurance company. You can have a perfect driving record and not have it matter one bit. Wohoo! You're not a person, you're a credit score!

[serryjw]

6. According to an insurance gal I spoke to today

colorado passed a law a few years ago...more pandering
http://www.rmiia.org/Credit_Scoring/Credit_scoring.htm

http://www.rmiia.org/Credit_Scoring/Colorado_Credit_scoring.htm

[sandnsea]

7. I live in Oregon

That's the way it is here. I haven't heard that any law has anything to do with it. Just another way to fuck the poor.

[serryjw]

8. I edited my post

read about the *ucken law

[sandnsea]

9. Those are protections

That law limits what the insurance company can consider in doing their credit ratings, I don't think most states have that much protection for people. That doesn't appear to be a law requiring insurance companies to use credit ratings.

[yvr girl]

10. OMG - I can't believe they do that

Our insurance is based on years of experience as a driver and driving record.

[xmas74]

11. MO does.

I read an article about a person who was charged $236 a month for liability insurance. They had a perfect driving record but they had recently filed for bankruptcy because of medical bills. They ended up selling their car because they couldn't afford the insurance.


Yes, it is another way to screw over the poor and keep them poor.

[KT2000]

12. Insurers in WA do

the insurance commissioner here really does not like it and tried to get a law passed that would forbid that. All he got was a bill that required insurance co's to explain how the credit score affects insurance rates.

Now when merchants try to get me to sign up for their credit cards I say "No way - that will just increase my insurance rates!" Would love to see the credit industry and the insurance industry fight it out.

A friend's insurance was greatly reduced when she got rid of all but one of her credit cards even though she always paid her bills on time.

EXTORTION!!

[Missy M]

13. Yes, my state allows a credit check for car insurance...

and with bad credit your insurance rate is higher and that stinks. If you don't pay your premium the insurance company drops you immediately, so what does it have to do with credit, it doesn't make sense.